One seasoned trader just noted that he believes that many market participants right now are experiencing a down market for the first time during this prolonged bull market and as a result are getting pummeled. The crazy moves in the markets are not over and we will see other declines before a sustained recovery takes hold. Of course there are many other reasons why the market is in such a sour mood.
Trump and his erratic comments have contributed greatly to the dramatic declines in the stock market at the end of last week. This week may well show some recovery as the G7 meeting has produced no major problems and no major Trump gaffs. Moreover, Trump seems to be walking back his most outrageous anti-China tariff comments. In addition, the comments out of the Jackson Hole symposium of central bankers are quite neutral. Support for a rate cut in September and potentially another one before year-end seem to have struck a positive note.
We now have to see how the market moves this week.